As March approaches, FOB export quotations for copper cathode rods remained basically flat before and after the Chinese New Year, with no significant changes. What are the main reasons behind this? Meanwhile, with the export window opening, is there potential for future copper cathode rod exports? What impact will this have on the export market for copper cathode rods? Below is an analysis of the recent copper cathode rod export market:
According to SMM statistics, this week (2.28), the FOB export processing fees for 8mm copper cathode rods recorded a minimum of $210/mt and a maximum of $230/mt, both remaining flat MoM. For 2.6mm copper cathode rods, the FOB export processing fees recorded a minimum of $250/mt and a maximum of $270/mt, also remaining flat MoM.
Due to the overall sluggishness in the foreign trade market before and after the Chinese New Year, and the reduced fluctuation in processing fees after switching to the processing trade model for exports, the FOB processing fees for copper cathode rods have remained stable recently. However, according to SMM, leading domestic export enterprises holding processing manuals saw export volumes in February remain stable in terms of demand, but the market showed no new consumption and lacked highlights.
It is worth noting that the current decline in import profit/loss has opened the export window, which is more favorable for the copper cathode rod export market. Specifically, on the raw material side, the decline in import profit/loss may lead to reduced inflows of imported raw materials, potentially tightening raw material supply for export enterprises and increasing demand for copper cathode under domestic processing trade. Furthermore, although the export window has opened, whether future export volumes of copper cathode rods can grow remains uncertain. With more enterprises focusing on the export market, a certain degree of cut-throat competition is gradually emerging in copper cathode rod exports, making it necessary to monitor overseas market demand closely.
